China To Repay Customers Hit By Bank Scam

Chinese authorities have announced that they will repay customers hit by a bank scam that sparked rare protests in the country.

The national banking regulator says customers at five rural banks whose funds have been frozen since April will get their money back from Friday.

Customers with deposits of up to 50,000 yuan ($7,442) will be repaid starting on Friday, the China Banking and Insurance Regulatory Commission said, with arrangements for repaying other customers to be announced separately.

The regulator added that fundings involved in illegal or criminal activities will initially not be repaid.

This comes after the police on Sunday said they arrested a number of suspects alleged to have taken control of several banks through a group company and made illicit transfers through fictitious loans.

The banking scandal has sparked protests recently. On Sunday, an estimated 1,000 depositors gathered outside People’s Bank of China in the city of Zhengzhou to demand their money back, following similar protests in May and June.